Asbestos victims question Hardie decision

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Asbestos victims are sceptical that building supplier James Hardie will follow on a last-minute decision to fully fund all future asbestos compensation claims.

The company yesterday made an 11th-hour decision to try to fund compensation for all those made ill from exposure to its products.

The decision came on the last day of the NSW government's Special Commission of Inquiry into James Hardie.

Asbestosis sufferer Bernie Banton said today that although he was initially ecstatic at the news, doubt had begun to creep in.

''I was so overjoyed at first that I nearly swallowed my oxygen hose,'' said Mr Banton, acting president of the Asbestos Diseases Foundation.

''But I'm all too aware the real definition is in the fine print.''

He said James Hardie had failed on many occasions to honour its commitments to victims and had argued before the inquiry that ''fully funded doesn't really mean fully funded''.

''To have argued for 53 of the 54 days of a government inquiry that they had no liability to victims, and then to come up in the last five minutes of the inquiry with a turn-around decision, was a mind-blowing change in position,'' Mr Banton said.

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''While we know it's a step in the right direction we're still, unfortunately, very sceptical and pessimistic.''

On its last day yesterday, the inquiry was told James Hardie would agree to participate in a scheme to compensate 4,374 future mesothelioma (asbestos-related illness) victims, 2,603 future non-mesothelioma victims and 926 future workers' compensation claimants.

But James Hardie counsel Tony Meagher SC said ''from my clients' directors' point of view (the scheme) has to be affordable ...''.

Mr Meagher said the proposal had to be addressed by the Hardie board and taken to shareholders ''and that the likely consequence will be one way, but I can't make a greater commitment than that''.

In 2001, James Hardie established the Medical Research and Compensation Foundation (MRCF), providing it with $293 million to meet future compensation claims.

However, it is expected that money will run out in just three years time, with a shortfall of more than $1 billion.

Later in 2001, James Hardie moved its headquarters from Australia to the Netherlands.
It has been alleged James Hardie wanted to prevent Australian victims seeking further compensation from the company, because the Netherlands does not have a legal treaty that would allow them to seek compensation in that nation's courts.

Australian Manufacturing Workers Union NSW secretary Paul Bastian today said the offer had too many qualifications.

''We certainly welcome the James Hardie's findings but we know with this company you have to scrutinise everything they say,'' Mr Bastian said.

''They announced the good news and then they heavily qualified it by saying it had to be affordable to James Hardie and it had to be under a statutory scheme they approved of.''

A James Hardie spokesman said any further developments were dependant on the outcome of the Jackson inquiry on September 21.

''Why don't we all just await Commissioner (David) Jackson's recommendations? That's what the commission of inquiry was called was called for,'' he said.

''There are unrealistic expectations about how fast this is going to move.''

NSW Premier Bob Carr said the decision was a major victory for the state government, but it would wait for the inquiry's findings before backing the move.